CORRECTION: Baotou Steel Rare-Earth net loss hits $9.83 mln in H1
The original story, published on Aug, 18, incorrectly stated that in May this year, major domestic rare earth producers including Baotou Steel Rare-Earth agreed to halt production for the whole of June, in order to support domestic prices of rare earth products. This should have read May last year. A corrected version of the story appears below.
Shanghai. August 18. INTERFAX-CHINA - Shanghai Stock Exchange-listed Inner Mongolia Baotou Steel Rare-Earth Hi-tech Co. Ltd., a major domestic rare earth producer, reported on Aug. 18 a net loss of RMB 67.19 million ($9.83 million), compared to a net profit of RMB 247.14 million ($36.16 million) in the same period of 2008.
Baotou Steel Rare-Earth generated total sales revenue of RMB 904.75 million ($132.39 million) in the first six months of 2009, down 30.01 percent year-on-year. The company attributed the falling sales revenue and net loss to lower product prices following the global economic slump.
The company's sales revenue from its main rare earth oxide products stood at RMB 386.76 million ($56.59 million) in the six-month period, down 18.33 percent year-on-year.
In May last year, major domestic rare earth producers including Baotou Steel Rare-Earth agreed to halt production for the whole of June 2008, in order to support domestic prices of rare earth products. However, this offered limited support to prices, Chen Jiazuo, an analyst from Beijing Antaike Information, told Interfax.
Chen said the Chinese government is now drawing up a plan for the consolidation of the domestic rare earth sector, requiring major domestic rare earth producers including Baotou Steel Rare-Earth, China Minmetals Corp., and the Aluminum Corporation of China (Chinalco), to take over other small and medium-sized Chinese rare earth producers.
Baotou Steel Rare-Earth's share price stood at RMB 20.85 ($3.05) at 1:06 p.m. Beijing time on Aug. 18 in Shanghai, down 5.27 percent from the previous trading day.
-LCL